BW: A large graphite mine would be 10,000–20,000 tons per year (10–20 Ktpa) and would have a revenue stream of $10–20M. Profit could be in the range of $3–8M.
It seems his 'typical' figures differ a little to KNL's BFS... He is calling 'revenue' of $1000/T ? Where KNL BFS is suggesting revenue of $1446/T with a Gross Profit of $870/T... fishing for comments ??
So if KNL has potential 'Gross' profit of US$33M from 36ktpa (around the $870/T), what are the expenses to get it to NETT profit... I see a 3% royalty - but what are the taxes ?
Assuming a loan term of 10 years @ 5%, the annual cost of the (US$77M) debt would be US$10M pa
or.. for 20 years would be US$6M pa - can these loan terms and rates be confirmed from industry experience ?
So take the US$33M gross profit, less 3% royalty (on sales ??) US$1.7M, less debt costs $6M, less TAXES (guess say $3M ??) - leaves US$22.3M profit... at 180M shares = 12.5c per share...
Based on that, the SP should be in the range of $1-$2+ ?? Once things are operational with runs on the board..?
KNL Price at posting:
22.5¢ Sentiment: Buy Disclosure: Held
